What is Loan Against Property? Check benefits like lower EMIs and interest rate

If you need to arrange funds for a big investment, you can use your property to arrange funds. Loan Against Property (LAP) is a secured type of loan that enables you to pledge your property in exchange for money. Both salaried individuals and businesses can benefit from LAP. There can be various motives for LAP, such as accumulating funds for your child’s education, business expansion, or a medical emergency. The loan is sanctioned after you mortgage your property. The credit amount equivalent to the current price of the property is approved by the bank. Here are some of the key benefits of LAP: Lower interest rate LAP charges a lower interest rate unlike products like personal loans. Long repayment tenure The repayment tenure of LAP can stretch up to 15 years. Lower EMIs The EMI gets reduced as the tenure gets longer. Hence, the burden of loan is brought down. Easy to avail You can easily avail LAP because it is a secured type of loan and banks are willing to offer credit. If you have a property, you can mortgage it with a reputed bank to get money for any business or personal needs. No problem regarding ownership The ownership of the property remains yours as soon as you pay the loan on time. You are also allowed to sell the property if you fail to repay the loan. Option to pre-close the loan You are able to pre-close the loan without paying any penalty to the lender in case you have borrowed the loan on floating interest rates. It is possible to do that whenever you have additional funds or you get the amount for the full repayment of the loan. The partial payments for closing the loan can be made as well before the loan tenure. Flexibility LAP offers you flexibility. You can select the tenure on the basis of your income and capacity of repayment. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.